Best Buy 2011 Annual Report Download - page 46

The components of the net revenue increase in fiscal 2011 were as follows:
Impact of foreign currency exchange rate fluctuations 2.4%
Net new stores 2.3%
Comparable store sales impact 2.0%
One less week of revenue for Best Buy Europe(1) (0.6)%
Non-comparable sales channels(2) (0.4)%
Total revenue increase 5.7%
(1) Reflects the incremental revenue associated with Best Buy Europe in the first quarter of fiscal 2010, which had 14 weeks of activity,
compared to 13 weeks in the first quarter of fiscal 2011.
(2) Non-comparable sales channels primarily reflects the impact from revenue we earn from sales of merchandise to wholesalers and
dealers as well as other non-comparable sales channels not included within our comparable store sales calculation.
The following table presents the International segment’s revenue mix percentages and comparable store sales percentage
changes by revenue category in fiscal 2011 and 2010:
Revenue Mix Summary Comparable Store Sales Summary
Year Ended Year Ended
February 26, 2011 February 27, 2010 February 26, 2011 February 27, 2010
Consumer electronics 21% 20% (2.5)% (12.0)%
Home office 55% 53% 5.0% (0.8)%
Entertainment 6% 7% (12.4)% (12.4)%
Appliances 9% 8% 15.2% 7.3%
Services 9% 12% (1.6)% 6.2%
Other <1% <1% n/a n/a
Total 100% 100% 2.4% (3.7)%
The products having the largest impact on our International segment’s comparable store sales gain in fiscal 2011 were
mobile phones, appliances and mobile computing. Increased sales in these product categories were partially offset by
declines in the sales of entertainment hardware and software, including video gaming hardware and software, DVDs and
CDs.
The 2.5% comparable store sales decline in the consumer electronics revenue category resulted primarily from declines in
the sales of navigation products and MP3 players and accessories. Televisions remained essentially flat, as gains in the
sales of televisions in China, were offset by declines in Canada, which faced market conditions similar to the U.S. The
5.0% comparable store sales gain in the home office revenue category resulted primarily from gains in the sales of mobile
phones and mobile computing, partially offset by declines in sales of desktop computers, monitors and accessories. The
12.4% comparable store sales decline in the entertainment revenue category reflected a decrease in the sales of video
gaming hardware and software and continued decreases in sales of DVDs and CDs. The 15.2% comparable store sales
gain in the appliances revenue category resulted primarily from increases in the sales of appliances within our Five Star
operations, where growth in consumer spending and temporary government stimulus programs continued to contribute to
stronger sales. The 1.6% comparable store sales decline in the services revenue category was due primarily to a decrease
in the sales of extended warranties driven by declines in the sales of televisions and notebook computers in Canada.
Our International segment experienced gross profit growth in fiscal 2011 of $153 million, or 4.9%. The increase in gross
profit in fiscal 2011 was due to an increase in revenue and the favorable impact of foreign currency exchange rate
fluctuations, as the gross profit rate decreased slightly. The 0.2% of revenue decrease in the gross profit rate in fiscal 2011
reflects an unfavorable mix impact of 0.5% of revenue, partially offset by a favorable rate impact of 0.3% of revenue. The
unfavorable mix impact resulted primarily from growth in our lower-margin China business and a decrease in the mix of
our higher-margin Europe business. The favorable rate impact was mainly the result of gains in Canada, with improved
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